Personal Finances

Exercise

(AACSB) Analysis

Using your own information (or made-up information if you prefer), go through the three steps in the financial planning process:

1. Evaluate your current financial status by creating a net worth statement and a cash flow analysis.
2. Identify short-term, intermediate-term, and long-term financial goals.
3. Create a budget (for a month or a year). Estimate future income and expenditures. Make up "actual" figures and calculate a variance by comparing budgeted figures with actual amounts.